5:26 PM
What is BitCoin ??
BitCoin is a concept of digital currency that can be exchanged between users electronically, securely without the help of any third party gateways. Designed by Satoshi Nakamoto in the year 2008, this concept uses asymmetric key cryptography to encrypt data. Users have to share their public key to the remote party who wish to send BitCoins. Users will have to download the Bitcoin Client software to adopt this currency.
Why the Hype ??
Recent weeks have been exciting for a relatively new kind of currency speculator. In just three weeks, the total value of a unique new digital currency called Bitcoin has jumped four times, to over $40 million
How does BitCoin works??
When you perform a transaction, BitCoin client does the encyphering of the data using your private key and transfers it over a distributed BiCoin network where in other BitCoin clients not involved in the transaction can verify the data. The data verification is done using the public key shared and a public log which is tracks if you have enough BitCoins to be spent.
Secure ??
The nature of the math used in BitCoin ensures an easy way to compute the transaction but it is practically impossible to generate fake transactions. The existence of BitCoin public log traces each and every single BitCoin spent.
How to Obtain BitCoins ??
Mt.Gox is one such exchange where users can trade BitCoins. Some enthusiasts have also started doing work, such as designing websites, in exchange for bitcoins. This jobs board advertises contract work paying in bitcoins.
Where to spend ??
There aren't a lot of places right now. Some Bitcoin enthusiasts with their own businesses have made it possible to swap bitcoins for tea, books, or Web design (see a comprehensive list here). But no major retailers accept the new currency yet.
Posted in: bitcoin,Technology
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